Highland Council has lost an appeal on how it should be taxed for selling one of its popular High Life leisure cards.
The authority and HM Revenue and Customs had been in dispute over what VAT should be paid on the All Inclusive version of card.
It gives unlimited use of gyms and swimming pools as well as activities in the High Life scheme.
Lord Penrose, a judge sitting at the Court of Session, has refused Highland Council's appeal.
The dispute did not involve the other two High Life cards on offer and are sold on a budget and pay-as-you-go basis.